Buy Litecoin – How To Buy Litecoin In The UK In Under 5 Minutes!
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Litecoin has held its own as a top-20 cryptocurrency for over a decade – making it one of the most established digital tokens in this industry. Often dubbed as the Silver to Bitcoin’s Gold, Litecoin could be a great way to diversify your crypto asset portfolio.
In this guide, we show you How to Buy Litecoin in the UK with a trusted online broker.
Table of Contents
#1 Broker to Buy Litecoin – eToro
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Mobile AppYes
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How To Buy Litecoin UK – Choose a Broker
If you’re looking to buy Litecoin in the UK in a simple and cost-effective way, it’s best to use an online broker. The process works much the same as buying shares online, insofar that you will need to open an account and deposit some funds.
Although we review the best brokers to buy Litecoin in the UK further down, below you will find a snapshot of which providers made the cut.
- eToro – Overall Best Broker to Buy Litecoin UK
- Alvexo – Invest in LTC CFDs with a Regulated Broker
- Margex – Best LTC Derivatives Trading Exchange with 100x Leverage
- Coinbase – Best Broker to Buy Litecoin for Beginners
- OKEx – Best Low-Cost Broker to Buy Litecoin UK via a Crypto Deposit
- Binance – Best Broker to Buy Litecoin for Asset Diversity
- CoinJar – Best Broker to Buy Litecoin UK for Those on a Budget
How to Buy Litecoin in the UK – A Quick Guide For 2022
We provide a full and detailed walkthrough of how to buy Litecoin in the UK shortly. However, if you want a quickfire guide on how to buy Litecoin right now – follow the steps outlined below.
- Step 1: Open an Account with eToro – To buy Litecoin in a low-cost and secure way, consider opening an account with an FCA-regulated broker. eToro is the best option here – as the platform allows you to invest in Litecoin from just $25 per trade.
- Step 2: Upload Your ID – Once you’ve opened an account with eToro, you will need to upload a copy of your passport or driver’s license. This is the case with all online brokers that are regulated by the FCA.
- Step 3: Deposit Funds – You’ll need to make a minimum first-time deposit of $200 at eToro. You can choose from a bank transfer, e-wallet, or debit/credit card.
- Step 4: Buy Litecoin – Search for Litecoin and click on the blue ‘Trade’ button. Enter the amount of money you wish to invest in Litecoin and confirm the buy order.
And that’s it – you’ve just bought Litecoin! The LTC tokens will be added to your eToro portfolio and you can assess the value of your investment in real-time.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Buy Litecoin in the UK
The first thing to consider is where to buy Litecoin in the UK. After all, there are plenty of unsavory cryptocurrency exchanges selling this digital coin – so it’s important to choose wisely. On top of safety and security, you also need to explore factors surrounding fees, commissions, supported Litecoin markets, payment methods, and customer service.
To save you from having to perform hours of independent research – below you will find a selection of the best brokers to buy Litecoin in the UK.
1. eToro – Overall Best Broker to Buy Litecoin UK
Nevertheless, eToro is a low-cost broker that allows you to invest in cryptocurrencies at a minimum stake of just $25. This means that you can buy Litecoin in the UK without needing to break the bank. It’s not just Litecoin that the platform offers, as eToro supports plenty of other digital currencies. This is inclusive of BItcoin, EOS, Cardano, Ethereum, Ripple, Uniswap, AAVE, and many others. When it comes to fees, eToro doesn’t charge any commission – as it operates a ‘spread-only’ pricing model.
In Layman’s Terms, this means that the only fee that needs to be covered is the difference between the buy and sell price. This starts from just 0.75% on cryptocurrencies at eToro – which is very competitive. There are no ongoing platform fees either, so you can HODL your Litecoin investment for as long as you wish. We also like the fact that eToro offers a secure in-build wallet, so you don’t need to worry about external storage or private keys.
On the contrary, the LTC tokens will remain in your eToro portfolio until you decide to cash out – which you can do 24 hours per day, 7 days per week. If you’re looking to invest in the wider cryptocurrency markets to mitigate your long-term risks, you might also consider the eToro CryptoPortfolio. Through a single investment, this allows you to purchase a diversified portfolio of digital currencies that is managed by the eToro team itself.
There is also a copy trading tool – which allows you to mirror the buy/sell positions of a successful eToro investor. This, alongside the CryptoPortfolio tool, comes with no additional fees. If you’re also considering investing in other asset classes, eToro is home to thousands of shares. This includes shares listed in the UK and 16 international exchanges. These, alongside hundreds of ETFs – can be bought and sought without paying any dealing fees or stamp duty tax.
Other marketplaces at eToro can also be found – which include commodities like gold and oil, forex, and indices. Getting started at eToro takes minutes – and you can complete the registration process online or via the mobile app. The latter is compatible with both iOS and Android phones. The minimum first-time deposit is just $200 (about £145), which you can fund instantly with a debit/credit card or e-wallet (such as Paypal).
Pros
- Invest in cryptocurrencies on a spread-only basis
- Buy thousands of UK and international stocks at 0% commission
- Minimum investment per trade from just $25
- Supports debit/credit cards, e-wallets, and local bank transfers
- Regulated by the FCA, CySEC, and ASIC
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
2. Alvexo – Invest in LTC CFDs with a Regulated Broker
Alvexo is a top-rated CFD broker that offers you the chance to trade cryptocurrencies, stocks, commodities, currencies, and indices. With Alvexo, you can enjoy industry-leading security protocols and world-class customer support.
Alvexo is regulated by the Cyprus Securities and Exchange Commission, which is one of the most highly respected financial regulators in the world. This makes Alvexo a very safe and secure choice for your CFD trading needs.
Furthermore, Alvexo is the perfect platform for anyone looking to invest in cryptocurrency or other asset classes without having to worry about commissions. With no transaction fees, you can focus on achieving your investment goals.
In addition, Alvexo’s spreads are always competitive, so you can be sure you’re getting the best deal around. Notably, Alvexo’s low spreads are perfect for traders who want to get the most out of their trading experience. With spreads starting at 2.9 pips for Classic accounts, you’ll be able to make quick and profitable trades with ease.
And if you upgrade to one of Alvexo’s advanced accounts such as the Gold or Elite account, you can enjoy even lower spreads like 2.2 pips and 0.1 pips!
Alvexo is the ideal platform for online traders looking for a low-cost, reliable way to trade the financial markets. With no deposit or withdrawal fees, and a low inactivity fee of just $10 per month after three months of no trading, Alvexo is the most cost-effective way to trade cryptocurrencies.
So whether you’re a seasoned investor or just starting out, Alvexo has the tools you need to succeed. Ready to get started? Visit Alvexo today!
Pros
- Heavily regulated by CySEC
- 0% commissions* when placing trades
- Offers five different asset classes to trade
- Full MT4 support
- Various account types to choose from
- Accepts PayPal
- Over 1.1m registered users
Cons
- Small inactivity fee applies
- The minimum deposit amount could be lower
70.81% of retail investor accounts lose money when trading CFDs with this provider.
3. Margex – Best LTC Derivatives Trading Exchange with 100x Leverage
Margex is the new kid on the block when it comes to crypto derivatives trading platforms. But don’t let that fool you – this platform is rapidly gaining traction and is sweeping the crypto industry.
Founded in 2020, Margex offers a user-friendly interface and a wide range of features that make it ideal for both experienced traders and those new to the world of cryptocurrencies.
Margex is based in the Seychelles, which means that the company can afford to be particularly privacy-conscious, and it does not require customers to undergo KYC.
Notably, Margex is the only trading platform with MP Shield, an AI-based system that protects you from price manipulations and unfair liquidations. Margex was designed from the ground up to provide you with the best possible protection.
With maker fees of only 0.019% and taker fees of just 0.060%, Margex offers some of the lowest rates on the market.
Furthermore, Margex provides unrivaled trading versatility. With Margex, you can trade any major cryptocurrency pair such as LTC/USD with leverage up to 100x.
With its cutting-edge technology, competitive fees, and secure environment, Margex is quickly becoming the go-to choice for many traders. So if you want to maximize your profits, Margex is the place to go.
So if you’re looking for a platform that will give you all the tools you need to succeed in the exciting world of cryptocurrency trading, look no further than Margex.
With a minimum deposit of just $10, users can enjoy high buying power and make substantial profits. So why wait? Sign up today and start reaping the benefits!
Pros
- Trade the most liquid cryptocurrency pairs
- Leverage up to x100 for increased profits
- Low fees on all trades
- Get started with just $10
- No KYC required, so your privacy is always protected
Cons
- A limited number of trading pairings are available
- Only BTC is accepted for deposits and withdrawals
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
4. Coinbase – Best Broker to Buy Litecoin for Beginners
After all, the platform is often the go-to broker for first-time cryptocurrency purchases – so novice traders are well catered for. In terms of supported markets, Coinbase offers dozens of digital currencies. On top of Litecoin, this also includes large cryptocurrency projects like Bitcoin, Ethereum, Dogecoin, and Ripple. The broker also supports a sizable number of ERC-20 tokens and Defi coins. This makes Coinbase a good option if you’re looking to invest in a diversified portfolio of digital assets.
Perhaps the main drawback with Coinbase is that the broker is a lot more expensive than eToro. For example, while eToro charges UK residents just 0.5% on debit/credit card deposits, at Coinbase you will pay 3.99%. This does, however, also include the trading commission. Additionally, eToro only requires you to cover the spread when you trade crypto, while Coinbase charges a standard commission of 1.49%.
When it comes to withdrawals, eToro charges a flat fee of just $5 while at Coinbase – cashing out to a debit/credit card will cost you 2%. To counter this high pricing structure, Coinbase does offer some of the tightest security controls in the cryptocurrency exchange industry. For example, it keeps 98% of client funds in cold storage. In simple terms, this means that client-owned digital currencies are stored offline at all times – which makes it virtually impossible for external hackers to breach the system.
You will also be required to set up two-factor authentication (2FA) – which you can do via SMS or a third-party app. Coinbase will also ask you to go through an additional security step if you sign in to your account with a new IP address or device. You can also elect to put a 48-hour time-lock on all withdrawal requests, which again, offers a further layer of security. Much like eToro, the process of buying Litecoin can be completed in a matter of minutes – so Coinbase offers a great blend of security and convenience.
Pros
- One of the most popular cryptocurrency exchanges
- More than 35 million users
- Supports instant debit card purchases
- Dozens of digital currencies to choose from
- Institutional-grade security practices
Cons
- Debit card deposits are expensive at 3.99%
- You will pay a standard trading commission of 1.49%
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection
5. OKEx – Best Low-Cost Broker to Buy Litecoin UK via a Crypto Deposit
This is because you are not depositing or withdrawing funds with fiat money – so no personal information or KYC documentation is required (limits apply). Instead, it’s just a case of transferring your chosen digital currency into OKEx and then exchanging it for Litecoin. OKEx offers several LTC markets, which includes Bitcoin, Ethereum, Tether, and USDC. If you don’t have one of the aforementioned coins to deposit, you can choose from over 100+ alternatives.
After all, OKEx charges a minute trading commission of just 0.10% per slide. This means that buying £2,000 worth of Litecoin would cost you just £2 in trading fees. OKEx is also a good option if you are an experienced trader, as the platform is home to advanced charting tools and plenty of technical indicators. On the other hand, if you’re a newbie, you can elect to use the basic trading platform. If at some point in time you need to deposit funds with fiat money, OKEx supports debit and credit card payments.
You will need to provide some ID if this is the case, albeit, OKEx is usually able to verify your documents quickly. Then, you can buy Litecoin in the UK instantly. Bank transfers and ApplePay are also supported. OKEx is also popular with traders in the UK as the platform offers a way to earn interest on your cryptocurrency investments. This is because the platform enables you to loan your digital tokens to margin traders. In return, you will receive interest for as long as the funds are locked up.
Pros
- Trusted crypto exchange with over 20 million users
- More than 400+ digital currency pairs
- Buy and sell cryptocurrencies with a debit/credit card or bank transfer
- Low commissions that start from 0.1%
- Fully-fledged mobile app on Android and iOS
- Great reputation and highly secure
Cons
- Debit/credit card fees could be more competitive
- Derivative products too complex for beginners
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection
6. Binance – Best Broker to Buy Litecoin for Asset Diversity
Launched in 2017, Binance is now the largest cryptocurrency exchange – both in terms of users and trading volume. This is because the platform now serves over 100 million users and is often home to tens of billions of dollars in trading volume each and every day. Binance is popular with traders for many reasons – especially when it comes to asset diversity.
This is because the platform offers hundreds of digital currencies and even more in the way of tradable markets. For example, not only can you buy Litecoin in the UK at Binance, but heaps of large-cap digital assets, ERC-20 tokens, Defi coins, and even NFTs (non-fungible tokens). The broker also offers cryptocurrency options and futures, albeit, if you’re a UK retail client you won’t legally be able to gain access to these financial products.
Nevertheless, in terms of buying Litecoin at Binance, fees will depend on your chosen payment method. For example, if you want to buy LTC tokens with a debit or credit card, Binance charges 1.8%. This is much more competitive than the 3.99% charged by Coinbase, but more expensive than the 0.5% available at eToro. If you want to deposit funds from your bank account, no transaction fees apply. Plus, Binance notes that the transaction is normally processed instantly.
If opting for a bank transfer, you’ll be pleased to know that Binance offers a GBP/LTC market. This means that you can purchase Litecoin with pounds and pence and pay the platform’s standard commission of just 0.10%. You will also benefit from a 0.10% commission rate should you deposit funds with an alternative digital currency like Bitcoin or Ethereum. This option will also allow you to buy Litecoin without needing to supply any personal information or KYC documentation.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit cards and local bank transfers
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
7. CoinJar – Best Broker to Buy Litecoin UK for Those on a Budget
Launched way back in 2013, CoinJar is the largest cryptocurrency exchange in Australia in terms of registered users and volume. With that said, the platform has since opened its doors to the UK markets. CoinJar is a particularly good option if you are looking to buy Litecoin in the UK with a small amount of capital. This is because you only need to meet a minimum investment of £5.
This also means that CoinJar is great for diversification purposes, as a £50 deposit would effectively allow you to invest in 10 different tokens. This top-rated broker is home to a great selection of markets, which is inclusive of Defi coins like Compound, Maker, Yearn.finance, Uniswap, and 0x. Large-cap coins are also supported – such as Bitcoin, Ethereum, Ripple, and Stellar. In terms of getting started, CoinJar will initially ask you to register an account and upload a copy of your passport or driver’s license.
After all, you will have unfettered access to the fiat money deposits and withdrawals. The easiest way to buy Litecoin in the UK at Coinbase is to use your debit or credit card. This is because the purchase will be completed instantly. This will cost you 2% of the transaction amount – meaning a £1,000 purchase will result in a fee of £20. Although cheaper options are available elsewhere, this is still more competitive than the likes of Coinbase.
Alternatively, you might also consider making a deposit via a UK bank transfer. Not only is this free of any transaction fees, but the transfer is sent via the Faster Payments network. This means that the funds should arrive in your CoinJar account in a matter of minutes. Just make sure you include your unique CoinJar reference in the transaction to ensure that delays are avoided. Once the funds do arrive, you can buy Litecoin in the UK at a commission of 1%.
Pros
- Has been active in the crypto brokerage arena since 2013
- Very user-friendly platform – so perfect for beginners
- Mininmum deposit of just £5
- No fees to deposit funds via Faster Payments
- Debit/credit cards also supported
- Top-rated mobile app
Cons
- Too basic for experienced cryptocurrency traders
at eToro, UK’s #1 Broker
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
How to Buy Litecoin in the UK – Detailed & Explained in Full
If you’re looking at how to buy Litecoin in the UK but you have never previously purchased cryptocurrencies online – this section provides a detailed walkthrough. Not only does this include the process of opening a cryptocurrency broker account and verifying your identity – but how to deposit funds and place a Litecoin order.
Note: Our walkthrough below will show you how to buy Litecoin at FCA-regulated broker eToro, not least because the platform offers the safest and most cost-effective option in the market.
Step 1: Open a Crypto Broker Account
The first step required at eToro is to open a crypto broker account. This will require you to enter some personal information – such as your first and last name, residential address, and national insurance number. You will also need to supply your contact details – which is inclusive of your mobile number and email address.
Next, you will need to verify your mobile number. To do this, eToro will send you a unique code via SMS. Then, you will need to enter this code on-screen to complete your account registration.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify Your Identity
eToro allows UK residents to buy cryptocurrency instantly up to the value of $2,250 – which is about £1,600. If you are planning to invest more than this, then you will be required to go through a KYC (Know Your Customer) process. This requires a copy of your passport or driver’s license and a document that verifies your home address.
The latter can be a recently issued bank account statement or utility bill. If you decide to skip the KYC process, you will need to complete it before you are able to make a withdrawal. As such, it’s best to get it out of the way now so that you can remove all account limitations.
Step 3: Deposit Funds
The minimum first-time deposit at eToro is $200. After that, you can deposit from $50 upwards. eToro supports various payment methods, albeit, debit/credit cards, Paypal, or Skrill is the best option. This is because your deposit will be processed instantly – which UK bank transfers aren’t. Irrespective of your chosen payment type, eToro charges a very reasonable FX fee of 0.5%.
Step 4: Search for Litecoin
At this stage of our step-by-step walkthrough, you should have a verified eToro account that is funded. If so, you can proceed to buy Litecoin. To go straight to the Litecoin investment page, enter ‘LTC’ into the search box at the top of the screen.
When you see ‘LTC Litecoin’ pop-up (like in the image above), click on the blue ‘Trade’ button. This will then populate a buy order box – which we explain in the next step.
Step 5: Buy Litecoin UK
The final part of the process will require you to enter your stake. This needs to be stated in US dollars and the minimum is $25. This means that you do not need to purchase a full Litecoin – which, at the time of writing, is LTC price was over $143 each.
As you can see from the image above, we are buying $25 worth of Litecoin – which is stated in the ‘Amount’ box. To complete your Litecoin investment, click on the ‘Open Trade’ button.
eToro will execute your LTC order instantly – and the tokens will be added to your portfolio.
Buy Litecoin – Best Place to Buy Litecoin in the UK
Now that we have walked you through the standard LTC investment process – we can talk about the best place to buy Litecoin in the UK. After all, there are several methods available – so you need to choose the right investment platform for you and your financial goals.
Below we discuss the best platform to buy Litecoin in the UK right now.
Online Cryptocurrency Broker
Cryptocurrency brokers are somewhat similar to traditional share dealing platforms. This is because you will need to open an account, verify your identity, deposit funds, and then invest in your chosen asset. In the case of Litecoin, you will be buying LTC tokens directly from the broker itself. This means that you don’t need to trade with another user – making the process ideal for newbies.
Additionally, online brokers that are regulated by the FCA – such as eToro, have the legal remit to accept fiat money deposits. This means that you can buy Litecoin in the UK with your standard debit/credit card. Bank transfers and even e-wallets like Paypal are also an option.
Cryptocurrency Exchange
Cryptocurrency exchanges – of which there are now hundreds, operate in a slightly different way to online brokers. This is because the exchange is simple an intermediary between buyers and sellers. That is to say, you won’t be buying Litecoin directly from the exchange. On the contrary, you will be purchasing the tokens from somebody that wishes to sell them.
On the one hand, this often results in very low trading commissions, as the exchange will is simply there to facilitates buy and sell orders between market participants. However, you should tread with caution when using a cryptocurrency exchange, not least because most are unregulated.
This means that by buying Litecoin in the UK from an exchange, your money is at risk. After all, there have been dozens of instances where cryptocurrency exchanges have been hacked or simply run off with client money. Plus, if the exchange is unregulated, this means that it cannot legally accept fiat money payment methods like a debit/credit card or bank transfer.
Litecoin ATMs
Another option to consider when learning how to buy Litecoin in the UK is via a cryptocurrency ATM. According to CoinATMRadar, there are just over 80 crypto ATMs in the UK that support Litecoin. If there is a terminal near to where you live, this means that you can buy Litecoin by inserting cash into the ATM.
Once you complete the transaction, the machine will print a receipt. This then allows you to transfer the coins into a private wallet. The main problem with buying Litecoin in the UK from a crypto ATM is that fees can range from 10-20% of the transaction amount. This means that you are sacrificing value for convenience.
Ways to Buy Litecoin UK
If you are unsure which payment method to use when investing in cryptocurrency online, below we discuss the best ways to buy Litecoin in the UK.
Buy Litecoin With Debit Card
If you are using an online broker that has the remit to accept fiat money – then the best way to buy Litecoin is with your debit card. Crucially, this is because you can normally buy Litecoin instantly – meaning that you will be in possession of the tokens as soon as you confirm the payment.
- You do, however, need to understand how much the broker charges for debit card payments – as this can often be pricey in the cryptocurrency space.
- As we have noted several times, Coinbase will charge you 3.99% for the pleasure.
- You then have brokers like Coinmama, which charge 5% in addition to a buy commission of 3.90%!
Platforms like Binance and CoinJar are more competitive at 1.8% and 2% respectively. But, the very best option to buy Litecoin with a debit card is eToro – as you will only pay 0.5% to deposit funds.
Buy Litecoin via Debit Card with 0% Commission Now >
Buy Litecoin With Credit Card
If your chosen broker supports debit cards, then it’s all but certain that credit cards are accepted too. The fees charged by the broker will normally be the same as a debit card purchase – meaning that there is no premium.
However, some credit card issuers do not support cryptocurrency purchases due to the risks involved. Plus, even if the issuer does permit this, you might be charged a cash advanced fee. This averages 3% in the UK – so do your homework before proceeding.
Buy Litecoin via Credit Card with 0% Commission Now >
Buy Litecoin With Paypal
Instead, you simply need to sign in to your Paypal account through an encrypted pop-up box. Then, it’s just a case of confirming the transaction and the broker will process it instantly.
Not many cryptocurrency brokers in the UK support e-wallets. We did, however, find that eToro supports Paypal, Skrill, and Neteller – should this be a preferred payment method for you.
Buy Litecoin with 0% Commission Now >
Buy Litecoin With Bitcoin
We discussed earlier that paying for your Litecoin purchase with an alternative cryptocurrency is a great option to consider. Not only is this because you will benefit from super low fees and commissions, but you will not need to go through a cumbersome KYC process. After all, the latter is typically only a requirement if you are looking to use fiat currency.
The process of buying Litecoin with Bitcoin (or any supported digital token) is as follows:
- Quickly open an account with a cryptocurrency exchange like Binance or OKEx
- Deposit Bitcoin into your account (10-20 minutes)
- Exchange Bitcoin into Litecoin by trading LTC/BTC
- Withdraw Litecoin to a private wallet
If you complete the above process with either Binance or OKEx, you will only pay a commission of 0.10%.
Buy Litecoin with 0% Commission Now >
Why Buy Litecoin UK?
Like all investment decisions, you need to think carefully before you buy Litecoin in the UK. This is because you will be risking real money on the digital asset – so in-depth research is key.
In the sections below, we explain some of the key reasons why you might want to buy Litecoin today.
Established and Solid Track Record
If you were to head over to cryptocurrency data platform CoinMarketCap – you will see that there are now more than 10,000 digital tokens in existence. You will also find that many of these crypto projects are less than a year old – meaning they have little to no track record in this industry.
This couldn’t be further from the truth in the case of Litecoin – which was first launched to the public in 2011. This makes LTC one of the most established cryptocurrencies in the market – which is crucial from a risk management perspective.
Price Action Since Launch
When Charlie Lee – the founder of Litecoin, launched LTC tokens to the open marketplace in 2011, it was trading at just a few cents. Fast forward to the crypto-bull market of late 2017 – and Litecoin breached a then all-time high of over $370.
Although the digital currency then followed the rest of the cryptocurrency markets by going through a prolonged bearish period, Litecoin has since breached this prior high by trading at over $388.
This feat was reached as recently as May 2021. This means that over the course of about 10 years, Litecoin has increased in value by over 129,000%. In comparison to stock market indexes like the FTSE 100 or S&P 500 – these returns are nothing short of astronomical.
Buy Litecoin While it is Trading at a Discount
In the traditional financial markets, buying an asset at a ‘discount’ means that you are investing when the instrument is undervalued. It could be argued that based on current prices, Litecoin is trading a huge discount.
After all, we noted in the section above that in May 2021, Litecoin breached new all-time highs at $388 per token. However, less than two months later in July 2021, the same digital currency is trading at just $142. There are two ways to look at this. Firstly, in comparison to its high of $388, this represents a discount of 51%.
Secondly, if you are bullish on the long-term prospects of Litecoin and thus – you believe it will once again surpass a price of $388 – this would require an upside of 106%. Taking these factors into account – now could be the right time to buy Litecoin in the UK.
Upside Potential
Another potential reason to buy Litecoin in the UK is that at current prices – the project is carrying a market capitalization of just under $10 billion. On the one hand, this is an impressive feat – especially when you consider that this makes Litecoin more valuable than much of the FTSE 100.
However, when you look at the value of other digital currency projects in this industry – it could be argued that Litecoin is still undervalued. For example, in May 2021, Dogecoin – which is a “meme” cryptocurrency created as a joke, breached a market capitalization of over $90 billion.
The Cost of Buying Litecoin
This guide on how to buy Litecoin in the UK has discussed investment-related fees throughout. To recap, below we explain the main costs of buying Litecoin online.
Deposit Fees
Deposit fees will be charged by almost all cryptocurrency brokers. The fee will vary depending on your chosen provider and your preferred payment method.
- For example, debit and credit cards are usually the most expensive, with some Litecoin brokers charging more than 5% of the transaction amount.
- eToro charges just 0.5% – which is the lowest we have come across.
If you transfer funds from your bank account, this is often free. On the flip side, this can delay the deposit process by a couple of days. With that said, Binance and CoinJar promote instant and free UK bank transfers via the Faster Payments network.
Trading Fees
Trading fees – otherwise referred to as the commission, are charged when you buy or sell Litecoin. In the cryptocurrency brokerage scene, this is usually a variable percentage.
- For example, at Coinbase, you will pay a commission of 1.49% to buy Litecoin.
- As such, an investment of £500 would cost you £7.45.
- If you then sold your Litecoin investment when it was worth £1,500 – your 1.49% commission would amount to £22.35.
eToro does things differently as the broker charges a spread as opposed to a variable commission. This refers to the gap between the bid and ask price of Litecoin =- which is dictated by market forces.
Risks of Buying Litecoin in the UK
Before you proceed to buy Litecoin in the UK – we would suggest considering the risks outlined below.
High-Risk Asset Class
Litecoin – alongside the many thousands of other digital currencies available to buy and sell online, is a high-risk asset class. This means that in many ways – there are two potential outcomes. On the one hand, you might make unprecedented returns in a very short period of time.
But, equally, there is every chance that you will lose a sizable chunk of your investment – should Litecoin and the wider cryptocurrency markets crash. This has happened many times in the past, albeit, the markets have always recovered. Just remember that Litecoin experiences above-average volatility levels – so be prepared for a bumpy ride for as long as you are invested in the asset.
Ultra-Competitive Marketplace
Of the 10,000+ cryptocurrencies that are in existence, many of these offer digital payment services just like Litecoin does. This means that Litecoin operates in a highly competitive marketplace. For example, Litecoin transactions often take 2.5 minutes to process.
In comparison, several alternative blockchain networks can process payments in less than a second. This means that ultimately – Litecoin is somewhat sluggish when it comes to efficiency and speed.
Founder of Litecoin has Already Cashed Out
When Litecoin went through a prolonged bull run in late 2017, its founder – Charlie Lee, made the decision to sell his entire portfolio of LTC tokens. This would be compatible with Jeff Bezos or Elon Must selling their entire share allotment in Amazon or Tesla, respectively.
In other words, it is highly questionable that the founder of Litecoin didn’t share the same faith in the project as other long-term investors. Although Lee is still involved with Litecoin, this should present a major red flag.
Selling Litecoin: A Quick Overview
If you’re wondering how to sell Litecoin after you have made an investment – the process will vary depending on where the tokens are being stored.
- For example, if you made the purchase at an online broker and decided to keep the tokens in your online web wallet, then you can typically cash out at any time day or night.
- When you do, the tokens will be sold at the current market rate and the funds subsequently added to your brokerage account balance.
If you bought Litecoin from an exchange and decided to withdraw the tokens to a mobile, desktop, or hardware wallet – then the selling process is slightly different. This is because you will first need to transfer your LTC tokens into an exchange before creating a sell order. Don’t forget – when you do get around to selling your Litecoin investment – you will likely need to pay a commission on the sale.
How to Buy Litecoin UK – Conclusion
If you’re looking at how to buy Litecoin in the UK right now with a trusted and low-cost broker – consider completing the purchase with eToro.
This top-rated trading platform allows you to stake from just $25 on Litecoin – meaning that you are not required to buy a full coin. Plus, you will only need to cover the spread – as opposed to paying a variable commission.
Most importantly – your investment funds are safe at eToro, as the broker is regulated by the FCA. You can buy Litecoin in the UK from eToro right now by opening an account and making an instant deposit with your debit/credit card!
eToro – Best FCA Broker Buy Litecoin UK
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